THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY

USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT

POLICY

Required Report - public distribution

Date: 9/22/2010
GAIN Report Number: IN1082

India

Livestock and Products Annual

2010

Approved By:
Thom Wright

Prepared By:
Ritambhara Singh

Report Highlights:
Based on provisional results of the Indian government‟s 2007 Livestock Census, cattle numbers since 2004 have been
revised. Buffalo meat production is estimated at 2.85 million tons in 2010 and is forecast to increase marginally in 2011,
reflecting increasing domestic consumption, growing exports and the small but growing trend of raising male buffalo calves
for meat production. Buffalo meat (mostly frozen) exports declined to 609,000 tons (on a carcass weight equivalent basis) in
CY 2009 and are estimated at 700,000 tons in CY 2010. Exports are forecast to increase in CY 2011 due to growing
demand for bovine meat in key export markets and competitive Indian buffalo meat prices.
Commodities:
Animal Numbers, Cattle
Meat, Beef and Veal

Production:
Growth in India‟s bovine herd is largely due to growth in Indian dairy production, which is the main driver behind livestock
production in India. Despite being home to the world‟s largest bovine herd and being the world‟s largest dairy producer,
India faces a growing dairy supply shortage. In response to this supply-demand situation, Indian producers have increased
the livestock population. As a result, combined cattle and buffalo stocks continue to rise. In 2009, Indian cattle and buffalo
stocks were pegged at 303.5 million head, consistent with the steady increases the dairy sector has experience since 2004.
This trend is expected to continue in the short-term, with 2010 and 2011 combined stocks forecast slightly over 2009 at 304
million head. Note that results of the government‟s semi-decadal livestock census of 2007 [1] (CY 2007 ending inventories)
shows a bounce back in the combined cattle and buffalo population at 303 million (198.3 million cattle and 104.7 million
buffalo), an increase of 7 percent over the 2003 census number of 283.1 million (185.2 million cattle and 97.9 million
buffalo). The latest census result has necessitated an upward revision to the total animal population since 2004.

India‟s large livestock and dairy sector is characterized by a small-holder system with low milk productivity on a per animal
basis. In order to respond to the growing dairy supply gap within this type of production system, the Indian cattle and
buffalo herd will likely grow in the short term, with an emphasis on genetic improvements and hybrid crosses intended to
increase milk output. Over the long-term, however, livestock production should taper off, assuming that milk producers
adopt more efficient practices and experience economies of scale. The calf crop, in the short term, is likely to grow as
producers attempt to keep cows in milk production. Calf production numbers have been revised to reflect increased milk
demand, as well as revisions from the 2007 census.

Indian livestock farmers show mixed preferences between buffalo and cattle. Traditionally, Indian farmers have preferred
buffalo milk due to its high milk volumes and fat content. Additionally, with the introduction of modern slaughterhouses, a
guaranteed market for buffalo meat has encouraged rearing of buffalo at the expense of cows in some regions of India.
However, many larger dairies, as well as dairy processors, are trending towards growth in cow production due to
characteristics such as shorter dry periods/consistency of supply, and yield improvements gained from imported genetics. As
a result, it is likely that growth will occur in both species in the short-term.

Although no official statistics are available, Indian buffalo meat production is forecast to rise by around 3 percent in CY
2011 to around 2.9 million tons, due to increasing domestic and export demand, according to industry sources. There is a
significant potential for India to increase buffalo meat production due to the large availability of low-priced animals and the
current low level of technology across the supply chain.

Buffalo cows, particularly those which have completed their lactation cycles, are predominantly used for meat. There are
about 3,900 licensed slaughter houses in the country authorized by local bodies. In addition, there are around 26,000
unauthorized slaughter houses. However, there are now 13 export-oriented, modern, integrated abattoirs or meat processing
plants registered with the Agricultural and Processed Food Export Development Authority (APEDA). There are also 24
meat processing and packaging units, which receive dressed carcasses from approved municipal slaughter houses for the
export of meat. It is likely that other export plants will be developed in the future given India‟s export focus.

Almost all Indian buffalo meat is a by-product of the Indian dairy sector, which is characterized by a low input/low output
production model. Under the low input system, farmers minimize buffalo and cattle feed rations to inexpensive green fodder
and agricultural crop residues. There is limited use of high quality feed grains or oilmeals. Although the government of
India is encouraging the rearing of male buffalo calves for meat purposes (see Production Policy section), there are only a
few organizations engaged in intensive buffalo rearing. As a result, Indian demand for feed grains in the cattle sector is
limited.

The processed meat sector, formerly regulated by the Ministry of Food Processing Industries (MOFPI), is now regulated by
the Food Safety and Standards Authority of India (FSSAI) through the Meat and Meat Products Order (MFPO), 1973 [2] .
The MFPO contains standards for the licensing of meat processors and regulates the standards for domestic production and
sale of meat products. It also enforces sanitary maintenance and controls at all stages of meat (including fish and poultry)
products production.

In February 2009, the GOI launched the National Meat and Poultry Processing Board (http://nmppb.gov.in/), an autonomous
body to oversee the growth and further promotion of the meat and poultry processing sector in India.

Production Policy

A National Project on Cattle and Buffalo Breeding (NPCBB) was launched by the government in October 2000 for a period
of 10 years. The project envisaged genetic improvements of indigenous cattle and buffaloes, development and conservation
of important indigenous breeds and the building of a sustainable breeding policy, with a focus on increasing milk
production. The government of India (GOI) has decided to continue this program through the 11th Five Year Plan period
(2007 -2012).

The nationwide animal mortality rate due to diseases as well as undefined reasons in India is reportedly at 7.5 percent in
cattle and 9.6 percent in buffaloes. An estimated 40 million animals die every year in the country due to natural causes,
disease and other problems [3] . Livestock diseases constrain production and productivity of Indian cattle although a major
pillar of the GOI‟s livestock development strategy recently has been the subsidized public delivery of veterinary services.
Although Rinderpest has been eradicated, other cattle diseases still continue to pose a threat to livestock production.
Diseases such as Foot-and Mouth Disease, Contagious Bovine Pleuropneumonia, New Castle Disease (Ranikhet Disease) are
causing economic losses.

Over time, the government has built up networks of physical and human infrastructure to provide veterinary services to
millions of farmers. However, the quality of services provided by these institutions is sometimes inadequate. In response,
the Department of Animal Husbandry, Dairying and Fisheries (DAHD), Ministry of Agriculture, GOI, is implementing the
2009 “Livestock Health and Disease Control” program in collaboration with various state governments (animal husbandry is
a state subject), which aims to improve diagnosis of a series of common diseases. The various components of the program
are: (a) Assistance to States for Control of Animal diseases; (b) National Project on Rinderpest Eradication; (c) Professional
Efficiency Development; and (d) Foot & Mouth Disease Control Program. The DAHD has recently added some additional
components to the program, which include The National Control Program of Peste des Petits Ruminants; The National
Animal Disease Reporting System; Establishment and strengthening of existing veterinary hospitals/dispensaries; and a
National Control Program of Brucellosis.

At the World Organization of Animal Health 78th General Session, held in Paris, India was recognized as having „negligible
risk‟ for Bovine Spongiform Encephalopathy (BSE). This recognition has been hailed by India‟s livestock sector in general
and by the export-oriented meat industry in particular, which exports about 500,000 tons of bovine meat annually to over
sixty countries.

Based on the assessments and recommendations made by the GOI Standing Committee of Parliament and the Planning
Commission, DAHD launched the program “Salvaging and Rearing of Male Buffalo Calves”, which envisages utilizing male
buffalo calves by rearing them for meat production and developing linkages with export-oriented slaughter-houses in several
potential states [4] . The new program, when fully implemented, could lead to a further increase in buffalo meat production in
coming years. Nonetheless, there are several constraints to increasing buffalo production in India, which include:

Scarcity of feed and fodder.

 Anti-cow slaughter legislation in several states.

Research and development constraints.

Inadequate market infrastructure, unorganized markets for livestock products, and a poor cold chain network.

Animal health and welfare issues.

Food safety issues.

Environmental constraints.

[1]
See: http://dahd.nic.in/draft_report_quick.htm
[2]
See: www.fssai.gov.in/mfpo.aspx
[3]
See: Parliamentary Committee on Agriculture Report http://164.100.47.134/lsscommittee/Agriculture/DFG%20%282010-
11%29%20DAHDF.pdf
[4]
For details please see: http://dahd.nic.in/SalvagingofMaleBuffalo.pdf
Consumption:Indian consumption of buffalo meat is low (per capita consumption is only two kilograms per person).
Local preferences for vegetarian protein sources have led Indian consumers pay a premium for beans and pulses, while
buffalo meat is among the least expensive locally available protein sources. Local buffalo meat consumption shows only
marginal increases, a reflection of a growing population, and a preference for vegetarian and dairy-based protein sources
Trade:
India does not import beef meat. Additionally, imports of pork, poultry, eggs (except for specific pathogen free (SPF)
eggs), hatching eggs and day old chicks are prohibited from the United States and other countries. India allows imports of
bovine semen and embryos and is in the process of developing an import protocol for live dairy cattle for breeding purposes.
However, various quality requirements specified under these import guidelines are restrictive and limit the availability of
imported genetics products. The detailed text version of these guidelines can be found at:
http://dahd.nic.in/trade/RGIIEX.pdf.

Indian buffalo meat exports have consistently grown over the last several years, due largely to its competitive pricing in the
world market. An exception to this trend took place in CY 2009, when exports declined by 9% from the previous year to
609,000 tons (on a carcass weight equivalent basis). These declines were likely due to the global economic slowdown,
which may have lead to reduced demand in key markets in Asia and Africa (the Philippines, Angola, for example). It is
important to note, however, that as a low cost competitor, Indian buffalo meat has generally weathered the economic
slowdown, and is forecasting a return to growth for 2010.

India mainly exports deboned frozen buffalo meat. The growing demand for bovine meat in global markets and its high
prices have resulted in an increase in buffalo meat exports from India in recent years. The buffalo meat share in total meat
exports from India is more than 90 percent (in value terms), followed by a three percent share of goat and sheep meat and
the rest comprised of poultry meat and animal casings. Exports of pork, poultry, and processed meat are almost negligible
due to high costs, inadequate meat processing facilities, and infrastructure constraints.

Exports of beef and veal have increased during the past 20 years, particularly to the Middle East and some South Asian
countries. Indian buffalo meat is exported to more than 60 countries. Prominent among these are traditional markets such as
Vietnam, Malaysia, The Philippines, the Middle East and emerging markets in Africa (Angola, Congo, Cote D‟ Ivories,
Gabon, Ghana etc.), CIS (Azerbaijan, Georgia, and Uzbekistan). In 2009 exports to Syria and Iraq registered significant
growth. Competitive pricing and increasing efforts by exporters to upgrade quality with support from the government
provide an impetus to India‟s meat exports.

Globalization of the Indian economy into the world economy through trade, investment and technology transfer is bound to
influence the livestock industry. The ability of the corporate sector to enter into agriculture and allied activities in the name
of modernisation and scale economies, thereby capturing raw material supplies for agro-processing and exports, should
support India‟s meat processing industry.

Table 1: India: Beef Exports (Metric Ton)

IFY [1] 2006/07 IFY 2007/08 IFY 2008/09 IFY 2009/10

VIETNAM SOC REP 21,188 50,344 104,286 114,737.03

MALAYSIA 69,443 53,096 45,004 55,826.96
PHILIPPINES 46,203 55,625 47,788 40,525.86
KUWAIT 40,299 37,477 32,939 33,370.84
EGYPT A RP 12,145 28,730 39,608 32,891.24
SAUDI ARABIA 30,752 32,518 24,039 28,369.26
U ARAB EMTS 29,891 26,212 15,649 21,418.39
JORDAN 28,655 19,513 14,662 17,724.39
ANGOLA 47,441 43,348 28,743 14,829.82
OMAN 11,872 12,216 10,165 13,923.87
IRAQ 2,122 6,564 1,353 12,876.16
CONGO P REP 14,067 10,896 13,947 12,789.45
SYRIA 168 114 1,588 7,983.69
IRAN 19,672 10,075 11,979 7,645.50
GEORGIA 13,069 10,041 6,179 6,928.32
LEBANON 3,041 5,441 6,353 6,075.38
GABON 6,812 7,997 5,689 5,885.90
SENEGAL 7,800 6,821 5,056 5,546.73
GHANA 6,498 9,880 7,109 4,746.60
QATAR 4,278 3,214 3,736 4,716.83
ARMENIA 1,466 5,926 4,355 4,294.04
COTE D IVOIRE 6,986 4,658 4,279 3,634.10
MAURITIUS 3,558 3,594 3,748 3,342.93
PAKISTAN 25,606 9,948 2,789 3,038.22
BAHRAIN 3,254 2,401 2,136 2,616.07
AZERBAIJAN 6,311 3,469 3,555 2,519.24
TAJIKISTAN 1,048 2,626 2,055 2,054.21
COMOROS 1,758 1,958 2,008 1,897.58
YEMEN REPUBLC 3,400 2,807 1,323 1,457.06
EQUTL GUINEA 1,389 1,517 962 1,318.40
BRUNEI 1,468 1,723 1,534 868.29
ALBANIA 1,003 279 1,366 812.37
NAMIBIA 224 565 954 337.04
CHINA P RP 3,612 564 526 307
AFGHANISTAN 3,869 3,512 1,251 273.03
UZBEKISTAN 1,112 492 569 224
OTHER 13,026 7,317 3,468 11543.31
TOTAL 494,506 483,478 462,750 311,305
Source: Director General of Commercial Intelligence and Statistics, GOI
Note: These GOI figures are on actual weight basis and not on Carcass Weight Equivalent basis

[1]
Indian Fiscal Year (IFY) runs April through March.

Policy:
The Livestock Importation Act, 1898 and its amendments regulate the importation of livestock and livestock products.
Details on the Livestock Importation Act, Livestock Importation (Amendment) Act 2001 and various notifications issued
under the Act can be accessed from: http://www.dahd.nic.in/tradematters.htm.

Procedures for the import of various livestock products into India, sanitary conditions/health protocol for various livestock
products, guidelines for imports/exports of animal germplasm, and other conditions with regard to imports of livestock
products have also been notified by the government of India and can be accessed from the above mentioned website.

The GOI extended the ongoing prohibition on imports of specified live animals and livestock products from all countries
reporting Highly Pathogenic Avian Influenza (HPAI) and Low Pathogenic Notifiable Avian Influenza (LPAI) until six
months following the most recent date of notification (March 18, 2010).

Current GOI regulations prohibit imports of live animals as well as poultry, ovine, caprine and swine meat and meat products
from the United States and other countries. Imports of beef from all sources is restricted. Bovine germplasm from the United
States has limited market access.
Production, Supply and Demand Data Statistics:
Table 2: Animal Cattle, PSD

Animal Numbers, Cattle

India
2009 2010 2011
Market Year Begin: Jan
Market Year Begin: Jan 2009 Market Year Begin: Jan 2010 2011
USDA Old
USDA Old New USDA Old New Officia Pos New
Official Post Post Official Post Post l t Post
281,40 303,50 303,50 281,10 281,10 304,00 304,00 (1000
Total Cattle Beg. Stks 0 0 0 0 0 0 0 HEAD)
120,30 127,50 127,50 120,90 120,90 128,00 128,00 (1000
Dairy Cows Beg. Stocks 0 0 0 0 0 0 0 HEAD)
(1000
Beef Cows Beg. Stocks 0 0 0 0 0 0 0 HEAD)
(1000
Production (Calf Crop) 57,960 61,250 61,250 58,300 58,300 61,500 62,000 HEAD)
(1000
Intra-EU Imports 0 0 0 0 0 0 0 HEAD)
(1000
Other Imports 0 0 0 0 0 0 0 HEAD)
(1000
Total Imports 0 0 0 0 0 0 0 HEAD)
339,36 364,75 364,75 339,40 339,40 365,50 366,00 (1000
Total Supply 0 0 0 0 0 0 0 HEAD)
Intra EU Exports 0 0 0 0 0 0 0 (1000
 HEAD)
(1000
Other Exports 0 0 0 0 0 0 0 HEAD)
(1000
Total Exports 0 0 0 0 0 0 0 HEAD)
(1000
Cow Slaughter 1,275 1,300 1,300 1,300 1,300 1,300 1,300 HEAD)
(1000
Calf Slaughter 4,065 4,065 4,065 4,175 4,175 4,200 4,200 HEAD)
(1000
Other Slaughter 20,820 22,000 22,000 21,825 21,825 23,000 23,700 HEAD)
(1000
Total Slaughter 26,160 27,365 27,365 27,300 27,300 28,500 29,200 HEAD)
(1000
Loss 32,100 33,385 33,385 31,270 31,270 33,000 33,700 HEAD)
281,10 304,00 304,00 280,83 280,83 304,00 303,10 (1000
Ending Inventories 0 0 0 0 0 0 0 HEAD)
339,36 364,75 364,75 339,40 339,40 365,50 366,00 (1000
Total Distribution 0 0 0 0 0 0 0 HEAD)
(1000
CY Imp. from U.S. 0 0 0 0 0 0 0 HEAD)
(1000
CY. Exp. to U.S. 0 0 0 0 0 0 0 HEAD)
(1000
Balance 0 0 0 0 0 0 0 HEAD)
(1000
Inventory Balance -300 500 500 -270 -270 0 -900 HEAD)
(PERCENT
Inventory Change 0 0 0 0 0 0 0 )
(PERCENT
Cow Change 1 0 0 0 0 0 0 )
(PERCENT
Production Change 1 0 0 1 1 0 1 )
(PERCENT
Production to Cows 48 48 48 48 48 48 48 )
(1000
Trade Balance 0 0 0 0 0 0 0 HEAD)
(PERCENT
Slaughter to Inventory 9 9 9 10 10 9 10 )
TS=TD 0 0 0

Table 3: Meat, Beef and Veal, PSD

Meat, Beef and Veal

India
2009 2010 2011
Market Year Begin: Jan 2009 Market Year Begin: Jan 2010 Market Year Begin: Jan 2011
USD
A Old
USDA USDA Offici Pos
Official Old Post New Post Official Old Post New Post al t New Post
(1000
Slaughter (Reference) 26,160 26,160 27,365 27,300 27,300 28,500 29,200 HEAD)
(1000 MT
Beginning Stocks 0 0 0 0 0 0 0 CWE)
(1000 MT
Production 2,610 2,660 2,750 2,760 2,795 2,850 2,920 CWE)
(1000 MT
Intra-EU Imports 0 0 0 0 0 0 0 CWE)
(1000 MT
Other Imports 0 0 0 0 0 0 0 CWE)
(1000 MT
Total Imports 0 0 0 0 0 0 0 CWE)
(1000 MT
Total Supply 2,610 2,660 2,750 2,760 2,795 2,850 2,920 CWE)
(1000 MT
Intra EU Exports 0 0 0 0 0 0 0 CWE)
(1000 MT
Other Exports 590 675 609 625 680 700 725 CWE)
(1000 MT
Total Exports 590 675 609 625 680 700 725 CWE)
Human Dom. (1000 MT
Consumption 2,020 1,985 2,141 2,135 2,115 2,150 2,195 CWE)
Other Use, Losses 0 0 0 0 0 0 0 (1000 MT
 CWE)
Total Dom. (1000 MT
Consumption 2,020 1,985 2,141 2,135 2,115 2,150 2,195 CWE)
(1000 MT
Ending Stocks 0 0 0 0 0 0 0 CWE)
(1000 MT
Total Distribution 2,610 2,660 2,750 2,760 2,795 2,850 2,920 CWE)
(1000 MT
CY Imp. from U.S. 0 0 0 0 0 0 0 CWE)
(1000 MT
CY. Exp. to U.S. 0 0 0 0 0 0 0 CWE)
(1000 MT
Balance 0 0 0 0 0 0 0 CWE)
(1000 MT
Inventory Balance 0 0 0 0 0 0 0 CWE)
(1000 MT
Weights 100 102 100 101 102 100 100 CWE)
(PERCEN
Production Change 3 5 3 6 5 4 2 T)
(PERCEN
Import Change 0 0 0 0 0 0 0 T)
(PERCEN
Export Change -12 0 -12 9 1 15 4 T)
(1000 MT
Trade Balance 590 675 609 625 680 700 725 CWE)
(PERCEN
Consumption Change 9 7 9 5 7 0 2 T)
1,166,079,2 1,156,897,7 1,166,079,2 1,184,090,4 1,173,108,0 1,166,079,2 1,166,079,2
Population 17 66 17 90 18 17 17 (PEOPLE)
Per Capita
Consumption 2 2 2 2 2 2 2 (KG)
TS=TD 0 0 0

Author Defined:
Table 4: Tariffs for selected Livestock Products

SPL TOTAL DUTY WITH IMPORT

HS CODE ITEM DESCRIPTION BASIC CVD CVD 2+1%EC POLICY

01011010- LIVE HORSES, ASSES, MULES & HINNIES 30 0 4 36.136 RESTD

01019090
01021010
- LIVE BOVINE ANIMALS 30 0 4 36.136 RESTD
01029090
01031000- LIVE SWINE 30 0 4 36.136 RESTD
01039200
01041010
- LIVE SHEEP & GOATS 30 0 4 36.136 RESTD
01042000
01051100
- LIVE POULTRY I.E. FOWLS OF THE SPECIES 30 0 4 36.136 RESTD
01059900 GALLUS DOMESTICUS, DUCKS, GEESE,
TURKEYS AND GUINEA FOWLS
02011000 MEAT OF BOVINE ANIMALS, FRESH AND
- CHILLED 30 0 4 36.136 RESTD
02013000
02021000
- MEAT OF BOVINE ANIMALS, FROZEN 30 0 4 36.136 RESTD
02023000
02031100- MEAT OF SWINE, FRESH, OR CHILLED 30 0 0 30.9 FREE
02031900
02032100- MEAT OF SWINE, FROZEN 30 0 4 36.136 FREE
02032900
02041000
- MEAT OF SHEEP OR GOATS, FRESH CHILLED 30 0 4 36.136 FREE
02045000 OR FROZEN
02061000 EDIBLE OFFAL OF BOVINE ANIMALS, FRESH 30 0 0 30.9 RESTD
OR CHILLED
02062100
- EDIBLE OFFAL OF BOVINE ANIMALS, SWINE, 30 0 4 36.136 *
02069090 GOATS, HORSES, ASSES, MULES OR HINNES,
FRESH, CHILLED OR FROZEN
MEAT, & EDIBLE OFFAL, OF THE POULTRY
02071100- OF 30 0 4 36.136 FREE
HEADING 0105, NOT CUT IN PIECES, FRESH
02071200 OR
CHILLED OR FROZEN
02071300 " CUTS & OFFAL, FRESH OR CHILLED 100 0 0 103 FREE
02071400 " CUTS & OFFAL, FROZEN 100 0 4 111.12 FREE
Note: CVD – Countervailing Duty, EC – Education Cess, RESTD – Restricted